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EOforLess is an errors and omissions insurance program sponsored by the National Ethics Association (NEA) that is designed especially for financial professionals with clean records. The Life Agents, RIA and P&C programs are administered by Mercer Consumer.

Qualified financial professionals are offered a discounted rate which is less than comparable E&O coverage for higher risk individuals. This represents a potential savings of hundreds of dollars for the typical insured.

According to NEA’s Program eligibility requirements, your membership with NEA must be initially purchased or renewed along with your valuable E&O insurance coverage. You can join NEA directly at www.ethics.net and then continue to Mercer and pay the insurance premium. This annual fee covers your membership in the NEA and is not part of the insurance transaction.

It allows you to pay a premium commensurate with your E&O risk profile. Since applicants have passed stringent eligibility questions, the premium charged reflects a preferred rate.

The Limits of Liability are:

Life Agents
$1M each claim/$2M in the aggregate
$20M total Master Policy Aggregate for all Claims for the Policy Year (the Master Policy Aggregate does not apply to New York Insureds)
P&C Agents
$1M each claim/$1M individual insured annual aggregate (the Master Policy Aggregate does not apply to NY insureds; please refer to Section V. B of the NY Amendatory Endorsement; NY coverage will be available 10-1-15 and after)
$10M total Master Policy Aggregate for all Claims under all certificates of insurance
RIAs
$1M each claim/$1M in the aggregate; or 
$1M each claim/$2M in the aggregate;  or
$1M each claim/$3M in the aggregate
$15M total Master Policy Aggregate for all Claims for the Policy Year (the Master Policy Aggregate does not apply to New York Insureds)

Conceptually, they are similar. A retention is paid by the insured and excess above that may be covered by the carrier up to the coverage limits. In the case of multiple claims for the same wrongful acts or interrelated wrongful acts, one retention will be determined by the carrier.

The policies’ retentions are:

Life Agents
$500 each claim for Life, Health and Accident Insurance, Long Term Care Products through any Insurance Company (that does not require a securities license)
$2,500 each claim for Disability Income Insurance, Fixed or Indexed Annuities (if purchased)
$5,000 each claim for Variable Annuities/Variable Insurance (that requires a securities license) and Mutual Funds sold through any Broker/Dealer (if purchased)

P&C Agents
$10,000 each claim

RIAs
$5,000 Securities (other than Mutual Funds/Variable Annuities/Variable Insurance), Investment Advisory Services, Fiduciary Advisor
$5,000 Variable Annuities/Variable Insurance (that requires a securities license) and Mutual Funds sold through any Broker/Dealer
$500 Life, Accident, Health Insurance and Long Term Care Products through any Insurance Company (that does not require a securities license)
$2,500 Indexed Annuities/Fixed Annuities
$2,500 Disability Income Insurance

Life Agents*  (if you are current member, the membership fee is not applicable)

Option

Coverage

NEA Membership Fee*

 

Insurance Premium

 

Total Cost (Includes NEA Membership Fee)

1.

Life, Accident, Health
$1M each claim/ $2M in the aggregate**

$156

+

$341

=

$497

 

2.

Life, Accident, Health, PLUS…Fixed and Indexed Annuities
$1M each claim/ $2M in the aggregate**

$156

+

$442

=

$598

 

3.

Life, Accident, Health, Fixed and Indexed Annuities, PLUS…Variable Annuities/Variable Insurance and Mutual Funds
$1M each claim/ $2M in the aggregate**

$156

+

$543

=

$699

Disability Option

Disability Income Insurance

$0

+

$26

=

$26



P&C Agents*  (if you are a current member, the membership fee is not applicable)

Option 

Coverage

NEA Membership Fee*

 

Insurance Premium

 

Total Cost (Includes NEA Membership Fee)

 

1.

$1M each claim/ $1M individual annual aggregate** (Tier 1)

$156

+

$595

=

$751

 

2.

$1M each claim/ $1M individual annual aggregate**
With an expanded definition of professional services included. (Tier 2 – available 10-1-2015 and after)

$156

+

$1,340

=

$1,496



RIA *  (if you are a current member, the membership fee is not applicable)

Option 

Coverage

NEA Membership Fee*

 

Insurance Premium

 

Total Cost (Includes NEA Membership Fee)

 

1. 

$1M each claim/ $1M in the aggregate**

$156

+

$1,492

=

$1,648

 

2.

$1M each claim/ $2M in the aggregate**

$156

+

$1,641

=

$1,797

 

 3.

$1M each claim/ $3M in the aggregate**

$156

+

$1,716

=

$1,872

* For non-members of the National Ethics Association (NEA), there is an annual membership. You can join NEA directly at www.ethics.net and then continue to Mercer and pay the insurance premium. This annual fee covers your membership in the NEA and is not part of the insurance transaction.

**A Master Policy Aggregate is not applicable to NY insureds; coverage for P&C Agents in NY will become available 10-1-15 and after.



No, not for annual payments. However, for monthly payments offered to Life Agents and quarterly billing offered to P&C Agents, there is a $5 convenience fee per payment.

You may pay annually by credit or debit card for any coverage with all programs.

The Life Agents’ program also offers an additional option to pay monthly. The annual charge will be payable in 10 installments. The 1st installment will be 25% of your total premium. The remaining 9 installments will be divided equally and will be due on the coverage effective date for the next 9 months beginning with the second month (i.e. If coverage is effective July 17th, the second installment will be due on August 17th). A $5 convenience fee will be added to each monthly payment. If two or more of your payments are rejected/declined, the monthly installment option will no longer be available and you will be required to pay the premium in full to keep your E&O insurance coverage in place.

The P&C Agents’ program also has an option to pay quarterly installments with a $5 service fee per installment payment.

The basic (Tier 1) professional services definition is specifically limited to the following property and casualty insurance products:

Comprehensive general liability policies; homeowners policies, automobile policies, workers compensation or employer liability policies, directors and officers liability policies, and employment practices liability policies. The expanded professional services definition (Tier 2) will include the products covered in the basic (Tier 1) coverage option plus the following:

Surety bonds, professional liability policies, business owners package policies, commercial package policies, personal property policies, crime policies, standard and nonstandard fire policies, umbrella policies, business interruption policies, dwelling policies and personal recreation vehicle policies

Coverage for the following activities is provided under the Master Policy:
1.  the sale, attempted sale or servicing of variable annuities, variable life insurance (that requires a securities license) and mutual funds that are registered with the Securities Exchange Commission, if required, through a Broker/Dealer that is a member of the Financial Industry Regulatory Authority; but only if such coverage is purchased;

2.  Investment Advisory Services;
3.  the sale or attempted sale or servicing of securities (other than variable annuities, variable life insurance and mutual funds) approved by and offered on the securities platform of  the Broker/Dealer with whom the Registered Investment Advisor or Investment Advisor Representative has a contract;

4.  Administration of Employee Benefit Plans;

5.  Financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;

6.  Services performed as a Fiduciary Advisor as defined in the Pension Protection Act of 2006, and any amendment thereof; or

7.  Only the following services as a natural person Agent or General Agent, to the extent they are provided in the course and scope of the Insured’s business as an Agent or General Agent and such Agent or General Agent has the appropriate license in both the Client’s resident state or jurisdiction and the state or jurisdiction in which the business is conducted but only if such coverage is purchased and shown on Certificate of Insurance:

a.  the sale, attempted sale or servicing of life insurance, accident and health insurance, or managed health care organization contracts (that does not require a securities license);
b.  the sale, attempted sale or servicing of disability income insurance;
c.  the sale, attempted sale or servicing of indexed/fixed annuities;
d.  the sale, attempted sale or servicing of Medicare Advantage or Medicare Supplemental Insurance;
e.  financial planning activities in conjunction with services described in paragraphs 1. through 4. of this definition, whether or not a separate fee is charged;
f.  the supervision, management and training of an Agent by a General Agent with respect to activities otherwise covered by the Master Policy.



Yes, the Life Agents Errors and Omissions policy offers an optional extended reporting period for an additional charge subject to the policy provisions so long as you have been insured under the policy for at least six (6) months. The policy also provides an automatic one year extended reporting period at no additional charge if you become retired or disabled during the certificate period so long as you have been insured under the policy for at least six (6) months and paid the applicable premium. The Registered Investment Advisor policy provides a one year automatic extended reporting period for no additional premium. However, this coverage under the extended reporting period will cease if you enroll in any broker, dealer, life agent, registered representative, financial planning or professional liability policy, other than this policy. You will not be entitled to an extended reporting period if your coverage is cancelled for non-payment of premium.

The P&C Agent program features an extended reporting period for 365 days subject to the terms and conditions of the policy.

Yes, the date the agent, general agent, registered representative, investment advisor representative or registered investment advisor became continuously insured without interruption under any claims made professional liability policy (subject to written proof of such coverage at the time the insured gives written notice to the insurer of a claim under the policy).

Yes, coverage is provided for a former or current secretarial, clerical or administrative employee solely for services performed within their capacity on the behalf of the Insured and provided that this person does not receive any commission income as a result of providing a professional service.

For the P&C Agent program, the policy affords coverage for secretarial, clerical and/or administrative employees of the Named Insured provided that employee (not the Named Insured) did not receive any commission income as a result of the professional services.

Yes, Defense costs are included within the limit of liability.

Yes, coverage is provided under the RIA policy only for services performed as a Fiduciary Advisor as defined in the Pension Protection Act of 2006. Coverage is not applicable under the Life Agents policy or the P&C Agents policy.

Financial Planning activities are only covered under the Life Agents and RIA policy forms if they are provided in conjunction with any of those services set forth in the definition of professional services. This would not be covered under the P&C Agents program.

The carriers met NEA's standards for product design and cost. In addition, the firms met our standards for financial strength and solvency.

Mercer Consumer, a service of Mercer Health & Benefits Administration LLC., is a global consulting leader in talent, health, retirement, and investments. Mercer helps clients around the world advance the health, wealth, and performance of their most vital asset—their people. Mercer’s 20,500+ employees are based in more than 40 countries. Mercer is a wholly subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy, and human capital.

The E&O Insurance policy provides coverage for your corporation, partnership or other business entity owned or controlled by you in providing Investment Advisory Services but solely with respect to the liability of such entity as it arises out of the rendering of Professional Services by you. Please be aware that your RIA coverage only covers your work on behalf of the RIA firm. All licensed advisors/agents in your firm must purchase their own E&O coverage.

No, those are the only limits of liability and retentions available.

There will no longer be coverage for Real Estate Investment Trusts (REITS) under the13 Master Policy per Exclusion V.

The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice.